Desktop Manager 5.0.1 - Can not sync

So this is the same old problem people have been having since DTM 4.3. I can't sync due to 'you don't have an internet connection'. One of the viable solutions is downgrade to 4.2, install the drivers for your phone, and off you go.

Here's the problem.

Due to the released security hole in previous versions of DTM, I need to run 5.0.1 across my domain. This is not by choice, it is due to our security compliance requirements.

So, I need a fix. This is a DTM 5.0.1 installation on a clean PC build. Windows XP sp3.